Speaker 1: Hi there, this is Shep Hyken, customer service speaker, expert, and the author of the New York Times and Wall Street Journal best-selling business book, The Amazement Revolution. On this video, I'm going to be more conceptual in nature versus how-to and cover some very interesting customer loyalty program statistics and what they might mean to you and the organization you work with. Now, these statistics focus mostly on business-to-consumer types of companies, and while the numbers may not specifically apply to a business-to-business type company, the concepts surely do. So regardless of the type of business you're in, think about how the following statistics and ideas apply to your industry and your company. The first three to come are from Ed Hadley, senior marketing manager of Kneeling Inc., who posted in the Cross-Channel Conservation blog the following statistics. 1. The average U.S. household has enrolled in more than 18 customer loyalty programs, but is only active in just over 8—8.4 to be exact. My take is just because someone signs up for your loyalty program, it doesn't mean they're ever going to do business with you again—at least in the near-foreseeable future. 2. Of the roughly $48 billion in reward points and miles issued annually, at least one-third that $16 billion worth goes unredeemed by the consumer. My take? I'm not convinced that the $16 billion of points and miles go unused—the customers may just be accumulating them versus spending them. That said, there are points that will never be redeemed or will expire—just not all $16 billion worth. 3. 85% of loyalty program members haven't heard a single word since the day they signed up. My take? I'm betting that this number is pretty accurate. There are a few programs that I've joined where the company doesn't contact me, but those are in the minority. Most companies do reach out to their customers, however their emails and letters look more and more like spam or junk mail. 4. The next statistics in the facts come from ClickFox's recent loyalty report. They make a good case that customers want to be loyal and would like a good loyalty program. But companies aren't doing enough to follow through on these programs. Let's start with a quote from Marco Pacelli, the CEO of ClickFox. He says, "...customers are demanding quality products and top-notch customer service, and they're willing to pay more for it. Companies need to differentiate themselves by producing quality products and exceptional customer experiences. It's up to them to deliver on the promises by regularly evaluating customer satisfaction and making decisions in real time." Great quote. And my take is that Mr. Pacelli is spot on. So here's ClickFox's stat number one. 88% of respondents indicated that quality is a key decision factor in remaining loyal to the brand. 72% identified customer service as a top priority. My take is these stats make a pretty strong case for customer loyalty, and the combination of a quality product with a great customer experience is what they're looking for. I've preached this for many years, and when you combine a quality product with great service, one plus one is much more than two. ClickFox stat number two. 48% of respondents said that the most critical time for a company to gain their loyalty was when they make their first purchase or begin their service. My take. First impressions count. It could be the first time you meet or work with somebody, or the 500th time. Set the tone for the first impression of that particular interaction, which sets the tone for everything that's to follow. And the final stat from ClickFox. 54% of respondents would consider increasing the amount of business they do with a company for a loyalty reward, and 46% said they already have. However, the majority of consumers, 62%, don't believe that the brands they're most loyal to are doing enough to reward them. My take. Customers want to be loyal. They would like some type of loyalty program. So do it right. Follow through after the customer signs up or commits to your program. Don't let your loyalty program be a gimmick just to get customers to sign up. You could have a million card-carrying members in your program, but don't be fooled into thinking you have a million loyal customers. Unless you engage with these customers, follow through with them, and make them feel special, you will only retain a percentage of these customers. And it starts with a great product that is combined with a great customer experience. Well, I hope you enjoyed this short lesson. Please be sure to visit my website, which is www.hyken.com. There you'll find more information about my speaking programs as well as almost 200 customer service articles that you can read and share with your colleagues. Thank you very much for watching. This is Shep Hyken. I'm reminding you to Always Be Amazing.